You know the story: Cap rates are at historically low levels and apartment values have been enjoying the ride. But is the fun about to end?
Have you invested in an apartment property over the past four years? If you have, there’s a really high probability that it’s gone up in value since you purchased it.
During this time, valuations for apartments across the country have been on an upward trajectory, driving down cap rates to levels last seen in 2005. In many cases and markets, cap rates are now at historically low levels. But with construction ramping up, the property market cycle maturing, and interest rates on the rise, many are now wondering if cap rates have bottomed and will head upward over the next few years.
Read more...The Future of Apartment Cap Rates - Multifamily Executive Magazine